Increasing demand for warehousing space conveniently close to major ports and accessible by shippers and carriers has become a significant concern in the last half of the year. This crunch in warehouse space and rising demand is primarily driven by the growth of e-commerce shipping and the surge of ocean freight containers (primarily from China) hitting U.S. ports across the country. Meanwhile, drayage service is in high demand, and the rest of OTR trucking faces stronger demand too. Such pressures lead to tighter capacity and higher costs, which increases rents and fees and creates a much more competitive environment for shippers and carriers. This demonstrates why import storage and warehouse space procurement remain key to the supply chain.
Why Import Warehouse Space Is Table-Stakes in Logistics
Warehouse space is much more than just empty shelves that can hold shipments and products. Securing capacity and space in warehouses near major ports makes it easier to unload shipping containers and get products loaded onto trucks. Products do not just sit until they are needed; the warehouse capacity allows for a smooth cycle of products coming in and going out. It allows for a smooth flow in the supply chain. Without it, every container could end up delayed, every truck sent out may face delays, and every shipment originating from that distribution hub could wind up delayed. All because there was not enough space in the nearby warehouses to accommodate the flow of products. Warehouse availability is a critical factor in supply chain logistics and operations, regardless of other market pressures, and part of that comes down to what types of brokerage partnerships a company has and how they ease the demands for warehousing.
Import Storage Reduces the Hassle of Managing Drayage and Costs
The increased demand for available and convenient warehouse space only adds new stress points to an already strained supply chain. E-commerce continues to grow in popularity, consumers expect and demand fast and reliable shipping services, and volatility continues to reign in the general market and economy. This further complicates the process of warehouse management and contributes to increased fees, expenses, and other costs associated with warehouse distribution and shipping. Having designated import storage reduces expenses while saving on man-hours, fuel usage, vehicle wear and tear, and more.
Added Benefits of Leveraging a Partner Built for Import Storage
Managing warehouses and procuring additional capacity when needed helps critical distribution hubs and active ports reduce delays and bottlenecks in the global supply chain. Partnering with an expert in import storage and logistics can have a tremendous impact. Logistics service providers and freight brokers have said for some time that finding availability in warehouses close to ports, such as those in Southern California and New York City, has gotten much more intense. As The Wall Street Journal highlighted, “A recent report said asking rents across the U.S. were up 7.1% year-over-year in the first quarter, but that the rents for industrial space in northern New Jersey and the Inland Empire, the industrial zone east of Los Angeles, were up 33.3% and 24.1%, respectively, from the same period the year before." As the demand for capacity rises, the need for reliable import space and warehouse availability also increases. Companies that can secure warehouse space can benefit significantly compared to those struggling to keep products flowing in and out effectively.
Put the Power of Expertise to Work by Partnering With Port City Logistics for Import Transportation
Warehouse space and availability continue to be major concerns for many supply chain managers. Global shipping and import transportation are at the heart of the worldwide supply chain network. Shippers and carriers alike can face major bottlenecks and delays with shipments when they do not have fast and convenient access to warehousing opportunities. With the right set of tools and expert guidance these issues can easily be managed. Contact Port City Logistics today to learn more.